The Consumer Finance Association, the trade body widely recognised for driving industry improvements and best practice in the short-term lending industry, has accepted four major payday lenders as members.
The move means membership of the CFA has doubled in the last twelve months and represents between 60-70% of the payday market.
As a condition of the new members – Cash & Cheque Express, Cash on Go (trading as Peachy), Next Credit and Think Finance UK Ltd (trading as Sunny) – all had to demonstrate compliance with the stringent standards set out in the CFA’s Code of Practice.
Russell Hamblin-Boone, Chief Executive of the Consumer Finance Association, said:
“Increasing the CFA’s membership is good news for the government, the regulator and more importantly for consumers because these businesses join our existing members in meeting the high standards of our code of practice. With some less reputable lenders dragging down the whole sector, it is important that the CFA and its members can set itself apart and help consumers to borrow safely and with confidence.
“The CFA has been resolutely focused on protecting borrowers and the progress we have made in raising standards has been publicly acknowledged by Jo Swinson MP, the Minister for Consumer Affairs, debt charities and in the media. So we are delighted to extend our reach further into the market by welcoming these four new members.”
Toby Wheeler, Managing Director of Cash & Cheque Express, said: “With new stores opening all the time, our business is at an exciting but critical stage. So it is vital that we have our finger on the regulatory pulse to ensure we are giving our customers the fast, flexible service they want but with all of the right protections in place. Joining the CFA will help us to do that.”
Kristjan Novitski, CEO of Cash on Go Ltd and Peachy said: “We aim to be the trend setter within the modern financial world which not only means predicting the requirements of tomorrow’s customer but also ensuring that our services are developed and delivered responsibly. Joining the CFA is a key part of our commitment to ensuring we operate to the highest standards.”
Marius Juvet, Managing Director of NextCredit Limited said: “We operate in a complex and rapidly changing regulatory landscape so the CFA’s position at the forefront of industry developments will provide us with hugely valuable knowledge and insight to allow us to run our business the right way for the benefit of our customers in the UK.”
John-Paul Savant, CEO of Think Finance UK, added: “We are pleased to be joining the Consumer Finance Association. Think Finance strongly believes that fundamental change is needed in the short-term lending market in the UK and lenders need to recognise the obligation they have to help consumers make informed choices. Through our innovative product, Sunny, we want to be at the forefront of this change and feel that our membership of the CFA is another big step in helping customers find better, cheaper solutions to their short-term financial challenges.”
The CFA’s Code, which came into force in November 2012, includes specific consumer protection measures including enhanced affordability assessments; limiting the number of times a loan can be rolled over (3 times) to prevent short-term loans becoming long term debts; and specific help for those that find themselves in financial difficulty such as freezing the interest and charges, arranging extended repayment plans and providing time to get their financial affairs in order. Uniquely, the CFA’s Code is independently monitored and audited to ensure that its members are meeting the standards it sets out.
For more information, or for interviews with the CFA, please contact Richard Griffiths firstname.lastname@example.org or on 07875 653959
New CFA members:
Cash & Cheque Express
Cash & Cheque Express offers a wide range of short-term financial services including payday loans, cheque cashing, pawnbroking and foreign exchange. It operates through a growing network of stores across London and the south of England.
Cash on Go Ltd (Peachy)
Cash On Go Ltd aims to provide a modern and high-tech financial solution, offering our insightful approaches to individuals worldwide. Its ethos is based on a code of ‘maximum customer satisfaction’ and the highest levels of technology, whilst adopting a global approach. Its first venture is Peachy.co.uk which is a rapidly growing consumer credit company based in the UK with an emphasis placed on mobile technologies.www.cashongo.co.uk
NextCredit, is are proud to be a responsible lender. Operating exclusively online it offers small sum loans (up to £400) for a period of between 14-28 days. www.nextcredit.co.uk
Think Finance UK Ltd (Sunny)
Think Finance is an international money technology company that offers a range of products to the millions of consumers under-served by traditional financial institutions. Committed to simplicity and straight-talking, they leverage the advancements in technology to provide innovative products and services. They are a relationship-driven business. sunny.co.uk is their first brand in the UK, offering consumers flexible repayment schedules and the potential to earn lower rates with a good repayment history.